Rana Mamdouh _ Hassan Allam Utilities announced securing debt financing of up to $566 million in partnership with Infinity Power, including up to $265 million arranged by the European Bank for Reconstruction and Development (EBRD), to develop the “Nefar El Minya” solar energy project.
In its statement released today, Hassan Allam emphasized that this step represents a significant milestone in their partnership to support the transition toward renewable energy in Egypt.
The project includes a 1.2 GW solar plant and a 600 MWh battery energy storage system
The company stated that the project is located in El Minya Governorate and combines a 1.2-gigawatt solar power plant with a 600-megawatt-hour battery energy storage system (BESS).
It pointed out that the project is anticipated to become the largest solar power plant in Egypt and Africa, enabling the storage of electricity generated during the day for use during peak demand periods after sunset, thereby enhancing grid reliability and extending the availability of clean energy.
The company noted that the financing arranged by the EBRD includes $160 million from its own resources, $75 million mobilized from the Bank of Jordan, and up to $30 million in concessional financing from the Clean Technology Fund.
The financing includes participation from DEG, FMO, and Proparco
The financing also involves participation from Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the Dutch Entrepreneurial Development Bank (FMO), and Proparco, reflecting strong international confidence in Egypt's renewable energy sector and the project development partners.
It is projected that upon commissioning, the “Nefar El Minya” project will generate enough electricity to meet the needs of more than 1.4 million homes annually and contribute to avoiding over 1.5 million tons of carbon dioxide emissions each year.
The project's electricity will be sold to the Egyptian Transmission Company under a 25-year power purchase agreement
According to Hassan Allam's statement, the electricity will be sold to the Egyptian Electricity Transmission Company under a 25-year Power Purchase Agreement (PPA).
Engineer Nayer Fouad, Co-Founder and CEO of Infinity Power, stated: “This substantial financing reflects confidence in Egypt’s renewable energy sector and in Infinity Power's capability to develop and execute major clean energy infrastructure projects.”
He added: “As the largest solar energy project in Egypt and Africa, coupled with one of the first utility-scale battery energy storage systems in Egypt, the Nefar El Minya project marks a crucial step toward enhancing energy security, increasing grid resilience, and supporting Egypt's transition to a low-carbon economy.”
He noted: “In cooperation with Hassan Allam Utilities and our financing partners, we are proud to contribute to the execution of this project, as we continue working toward our goal of achieving 10 gigawatts of operational renewable energy capacity by 2032 and expanding access to clean, reliable, and affordable energy across Africa.”
Dalia Wahba, CEO of Hassan Allam Utilities, stated: “Our success in securing the necessary financing for this project underscores the importance of strong partnerships in providing the investments required for energy infrastructure development.”
She mentioned that with Egypt targeting the generation of 42% of its electricity from renewable sources by 2030, Hassan Allam Utilities continues to play its role in supporting this direction by developing reliable clean energy infrastructure across the country.
She continued: “Through Hassan Allam Utilities, in collaboration with Infinity Power and our financing partners, we are combining large-scale solar power generation with battery energy storage to ensure the availability of clean electricity during periods of high demand.”
She affirmed: “The impact of these projects is not limited to reducing reliance on imported fuel, but extends to enhancing Egypt's energy security and fostering a more competitive environment that supports sustainable growth.”
